This thread has gone completely on a tangent . The question remains how do paypal users , at THE PRESENT TIME, mitigate their risks?
The opinions expressed herein are neither opinions, nor expressed.
Nov 14th, 2017 6:56 pm
Nov 14th, 2017 7:04 pm
What risks? The same way any CRA questions are dealt with. You produce your receipts, invoices and evidence that they ask for. The same "risk" is present for anyone regardless of using PayPal or not.
Nov 14th, 2017 7:27 pm
Nov 14th, 2017 7:29 pm
Thanks. It is quite less because Paypal charges money for the transaction. So, in all, I made about $23. See? I do not evade taxes.FoFai2015 wrote: ↑Nov 14th, 2017 6:47 pmFor those saying you don't need to file if you made less than the basic personal amount, that's not entirely true. If you made more than $3,500 of net business income, you have to pay CPP. Of course, if your income is low, you might actually get more money from the Working Income Tax Benefit. You might not have to pay tax due to low net business income, but it's always better to file to prove this (and get any benefits you can out of the tax system while you're at it). This is especially true if you have lots of revenue (eg $300,000) but low net income (eg $5,000). The CRA is not clairvoyant and will not know your expenses if you don't tell them, but they can "assume" you had low expenses and assess a lot of tax.
Furthermore if you lost money, you can claim losses against other income (for instance, against lifeguard income) or if you have no other income, carry it forward for a later year where you have to pay taxes.
TLDR: If your revenue is more than $3,500, file your taxes. If you are both employed and self-employed, file your taxes (and not just what's on your T4), even if your income is low.
He's just trying to scare you. Noone is going to jail for $24. Putting you in jail for 1 hour costs more than that.
If you are employed and also made $24 via Paypal, you actually should report that $24. (If that's your revenue, you should report that as gross business income, and your net business income would be the only part of that taxed.)
Having said that, the amount is small. You might owe $5 on that, plus late penalties and interest. It's literally not worth the CRA's time to go after you for that.
Nov 14th, 2017 7:33 pm
What's up with every other poster assuming that everyone else is a tax cheat and turning the conversation into a game of cops and robbers? There are hundreds of people who view this conversation, and they all use paypal differently. You won't know who's the $1/year user and who's the $1,000,000/year user, so let's just be civil and assume innocent until proven guilty.don242 wrote: ↑Nov 14th, 2017 7:04 pmWhat risks? The same way any CRA questions are dealt with. You produce your receipts, invoices and evidence that they ask for. The same "risk" is present for anyone regardless of using PayPal or not.
If your question is how do people mitigate risk after evading taxes all these years, that is a different question. Speak to a tax lawyer.
Nov 14th, 2017 7:58 pm
The court order to PayPal was for documentation within a specific time frame that has passed. Changing your PayPal info now might help when future court orders are made. Won’t help with the current court order.grilw wrote: ↑Nov 14th, 2017 7:33 pm
Seeing as this is the digital age, I was thinking more along the lines of taking some sort of proactive/preventative measures NOW, such as changing/distorting Paypal info before it's disclosed to the CRA to make reconciling identities harder, or some other create tactic. It is for these creative that I'm participating here, not to be told to go "Speak to a tax lawyer", but thanks. Perhaps others with a better understanding of the disclosure process can chime in.
Nov 14th, 2017 8:16 pm
And my point is that people are overreacting to this order. Especially if they have nothing to hide.grilw wrote: ↑Nov 14th, 2017 7:33 pmWhat's up with every other poster assuming that everyone else is a tax cheat and turning the conversation into a game of cops and robbers? There are hundreds of people who view this conversation, and they all use paypal differently. You won't know who's the $1/year user and who's the $1,000,000/year user, so let's just be civil and assume innocent until proven guilty.
Nobody, and that includes law abiding citizens, want to be subjected to an audit, ever. This we know without a doubt. As the thread has uncovered, there are a variety of reasons why innocent PayPal users may find themselves swept up into this. Moreover, some of us simply aren't interested in making the government's life easier, and that can happen for various reasons.
Seeing as this is the digital age, I was thinking more along the lines of taking some sort of proactive/preventative measures NOW, such as changing/distorting Paypal info before it's disclosed to the CRA to make reconciling identities harder, or some other create tactic. It is for these creative that I'm participating here, not to be told to go "Speak to a tax lawyer", but thanks. Perhaps others with a better understanding of the disclosure process can chime in.
Nov 14th, 2017 8:20 pm
Nov 14th, 2017 8:24 pm
Get some cheap (free?) accounting software.
Nov 14th, 2017 8:42 pm
Why keep personal separate from business related? What do you mean by this?
Nov 14th, 2017 8:44 pm
Nov 14th, 2017 8:49 pm
Nov 14th, 2017 9:15 pm
Nov 14th, 2017 10:56 pm
If you are actually running a business, realistically most people should know if they are, then start getting receipts in order for expenses as CRA will most likely assess arbitrarily on revenue as they will have that info from PPal. It is up to the taxpayer to refute the assessment.
Nov 14th, 2017 11:02 pm